The Indonesian government has issued Rp 120 trillion ($12.84 billion) in Islamic bonds, better known as sukuk, over the past four years, which the Finance Ministry attributes to an “excessive” demand among Muslim investors.
The ministry’s director for Shariah financing, Dahlan Siamat, said the government issued its first sukuk in 2008, and as of Thursday had issued a total of Rp 120 trillion in sukuk bonds………………………………………..Full Article: Source

Johor Corp., Malaysia’s state-owned investment company, sold 3 billion ringgit ($948 million) of Islamic bonds that drew bids for more than three times the amount on offer, two people familiar with the matter said.
It issued five-, seven- and 10-year notes at yields of 25-29 basis points over the government’s non-Shariah-compliant securities, said the people, who declined to be named as the information is private. The sale attracted 11 billion ringgit in orders, they said………………………………………..Full Article: Source

The global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, an expert said. “Large pools of Muslim wealth and abundant liquidity have ensured that demand for sukuk still exceeds supply,” said Adnan Halawi, leader of the fixed income team at business and financial intelligence company Zawya.
“Islamic finance’s safe-haven, asset-backed nature has led to more and more investors, globally, opting for sukuk to diversify portfolios and meet financing and refinancing requirements,” he said………………………………………..Full Article: Source

The USD 214 billion global sukuk industry is witnessing unprecedented growth, complemented and triggered by diversification, Adnan Halawi, leader of the Fixed Income Team at business and financial intelligence company Zawya, said.
Data from Zawya Sukuk Monitor shows that South East Asia accounts for 70% of the market, topped by Malaysia, while the GCC accounts for 29% of the market with the momentous entry of Saudi Arabia in 2011. While other countries are expected to join the club of issuers, Halawi forecast 2012 issuance of sukuk would be at least as good as last year’s USD 85 billion, and in the best scenario to exceed USD 125 billion………………………………………..Full Article: Source

Arabian Gulf bond sales are set for a record first half as lower borrowing costs enable companies in the region to refinance debt and raise money for expansion. Governments and businesses in the six-nation Gulf Cooperation Council have sold $18.2 billion in bonds this year, 76 per cent more than in the same period in 2011, data compiled by Bloomberg show.
That’s the most for the first half since Bloomberg started tracking the data in 1999. The GCC sales expanded four times faster than those in emerging markets, which are up 19 per cent in 2012, the data show………………………………………..Full Article: Source

Islamic private-equity investments are poised to quadruple in Malaysia to US$3.1bil (RM9.7bil) in five years on government incentives, according to the industry’s biggest fund manager.
CIMB Islamic Bank Bhd, which oversees RM1.7bil of funds that invest in unlisted companies, was handling more cash for state institutions and benefiting from tax exemptions on fees until 2016, Kuala Lumpur-based chief executive officer Badlisyah Abdul Ghani said……………………………………….Full Article: Source

HSBC Amanah will offer Islamic foreign exchange forwards and cross-currency hedging instruments in Indonesia starting next month to help Shariah-compliant banks manage risks arising from currency fluctuations.
“For these two products, we are the first to receive approval from the central bank,” Herwin Bustaman, HSBC Amanah’s Indonesia head, said. “Right now Islamic banks are exposed to market risk. This will help the capital markets.”……………………………………….Full Article: Source

Malaysia’s central bank will eventually expand its new Islamic money market funding facility to allow trades of the instrument between commercial banks, while introducing longer tenors, the central bank said on Thursday.
The central bank announced last week that it was launching a collateralised murabaha facility through which Islamic banks could obtain funds from the central bank by pledging high investment grade sukuk as collateral. The new facility aims to aid Islamic banks’ liquidity management………………………………………..Full Article: Source

Emirates, the world’s largest airline by international traffic, raised Dh1.9 billion ($517 million) from an Islamic facility for the purchase of three aircraft.
The carrier completed the 12-year loan to buy planes including Boeing’s 777-300ERs and Airbus SAS’s A380 with Dubai Islamic Bank, Al Hilal Bank and Ajman Bank, it confirmed on Thursday in an e-mailed statement. The two Boeing planes were delivered in February and May, said the company………………………………………..Full Article: Source

Qatar International Islamic Bank (QIIB), parent company of Islamic Bank of Britain (IBB), is considering the sale of the UK’s only sharia-compliant retail lender as it struggles to gain scale in the UK market.
IBB confirmed it had received an approach by QIIB, which currently owns a controlling 88.41-percent stake, to take over the remaining shares with a view to a possible sale as it considers the strategic future of the UK bank………………………………………..Full Article: Source

As the government looks to wean domestic companies off their dependence on exports to struggling eurozone countries, the new strategy looks east to high-growth, high-volume markets in developing nations.
It’s a plan that has been widely criticized by small business leaders as too risky, and banks aren’t exactly lining up to finance dicey ventures, but a group of Islamic banking experts who convened recently for a conference at the Czech National Bank say Islamic banking can help Czech exporters crack new markets in predominantly Islamic countries………………………………………..Full Article: Source

Recent press reports suggest Islamic investment bank Gulf Finance House is continuing to restructure its balance sheet. Bahrain-based bank had received approval to use reserves to write-off $31.26 million of accumulated losses.
Last month Gulf Finance House (GFH) said creditors hold $110 million in GFH Sukuk had agreed to extend repayments over six years………………………………………..Full Article: Source

It has been a difficult 12 months for EFG-Hermes, the leading Middle East investment bank, which now finds itself in the teeth of a financial storm as the subject of an unwanted takeover battle.
The Cairo-based bank, founded in 1984, has seen its market value drop steeply since the turmoil of last year’s uprising in Egypt. Its shares have lost more than a third of their value in the past year, giving it a market capitalisation of $850m………………………………………..Full Article: Source

ZamZam, the under formation Islamic bank officially announced that it failed to launch its operation of interest free banking.
The board of directors of the bank told shareholders, the full Islamic banking operation will not be visible due to the National Bank of Ethiopia (NBE) directive that was ratified in September 2011, barring Islamic banking………………………………………..Full Article: Source

Following the huge response to the initial public offering (IPO) of Bank Nizwa, the Muscat Securities Market (MSM) expects the launch of Islamic banking and the listing of banks and their products to add value to the bourse and boost activity in Oman’s capital market.
Speaking to Muscat Daily on the sidelines of the Oman Islamic Banking and Finance Conference on Tuesday, Ahmed Saleh al Marhoon, MSM director general, said a large segment of Omanis would prefer to deal with Sharia-compliant banks rather than conventional banks………………………………………..Full Article: Source

The private banking sector in the Middle East and Africa may grow 6.6 percent a year to reach $6.1 trillion in value in 2016 as the gross domestic product of oil-rich countries in the region continues to expand, a study from Boston Consulting Group, BCG, shows.
The consultancy firm’s forecasts are higher than the region’s actual performance in 2011, when the Middle East’s market for the ultrarich slowed to 4.7 percent to reach $4.5 trillion, largely due to the political upheavals………………………………………..Full Article: Source

The ability of US bankruptcy law to handle shariah-compliant structures is being tested after Bahraini firm Arcapita Bank’s decision in March to file for bankruptcy protection in the US.
The bank filed for Chapter 11 after negotiations to refinance a $1.1 billion murabaha facility broke down. A murabaha involves the sale of an item on a deferred basis, often connected to a commodity………………………………………..Full Article: Source

“Open for Islamic business:” That’s the message Business Bermuda took to the World Islamic Banking Conference: Asia Summit in Singapore.
“After a whirlwind of meetings, events, conferences, and media interviews in Shanghai, Beijing, Singapore, and Hong Kong, Business Bermuda concluded the 2012 Asia Business Development Drive on a high note,” A Business Bermuda statement said………………………………………..Full Article: Source

Asian companies should look at opportunities in developing a vibrant capital market in the Middle East. This was the hot topic discussed by some 450 leaders at the Asia-Middle East Investment Summit and the 3rd Annual World Islamic Banking Conference.
The Islamic Bank of Asia’s CEO Toby O’Connor, said: “The Middle East is a competitive environment. There are a number of Gulf Cooperation Circle countries that are trying to develop their own standalone financial expertise and create their own hub.”……………………………………….Full Article: Source

Last year was a landmark year for Islamic finance—innovative new products were launched and new markets opened up that few would have considered likely candidates just a few years ago.
These trends look set to continue in 2012. In May 2011, Oman permitted the establishment of Islamic banks in the kingdom, which will see a number of Islamic windows and fully-fledged Islamic banks roll out services in the coming months………………………………………..Full Article: Source

In mid- May Tennessee Governor Bill Haslam appointed Samar Ali, a former White House fellow and member of the international Washington, DC –based law firm of Lovells & Hogan, LLC as international director of the Tennessee Department of Economic and Community Development.
“Ali, who is from Waverly, will serve as international director. She joins ECD after serving as a White House Fellow and practicing corporate law at Hogan Lovells in Washington, D.C., and Abu Dhabi. Her role will include overseeing TNTrade as well as ECD’s other international initiatives, including managing the operations of the state’s four international offices.”……………………………………….Full Article: Source

Dow Jones Indexes, a leading global index provider, today announced the results of the regular annual review of the Dow Jones Islamic Market Titans 100 Index and its three subindexes, Dow Jones Islamic Market U.S. Titans 50 Index, Dow Jones Islamic Market Asia/Pacific Titans 25 Index and Dow Jones Islamic Market Europe Titans 25 Index as well as the Dow Jones Islamic Market Malaysia Titans 25 Index. All changes will be effective after the close of trading on Friday, June 15, 2012.
In the Dow Jones Islamic Market Titans 100 Index and subindex Dow Jones Islamic Market U.S. Titans 50 Index, Baker Hughes Inc., Corning Inc. and Marathon Oil Corp. will be replaced by eBay Inc., Express Scripts Holding Co. and Nike Inc. Cl B. (Press Release)